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HomeMy WebLinkAboutResolution - 2020-R0200 - LEDA Expenditure, MTBC, Ltd. - 06/23/2020Resolution No. 2020-R0200 Item No. 7.13 June 23, 2020 RESOLUTION WHEREAS, pursuant to Section 501.073 of the Texas Local Government Code the City of Lubbock. as the coq>oration*s authorizing unit, has the authority to approve all programs and expenditures of the l.ubbock Economic Development Alliance (LEDA); and WHEREAS, the City Council finds that it is in the best interest of the public to approve the program or expenditure, as proposed to the City Council by LEDA, as set forth in Exhibit "A" attached hereto and incorporated herein by reference; NOW THEREFORE: BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: THAT the program or expenditure of the Lubbock Economic Development Alliance, in the amount set forth in Exhibit '"A" attached hereto and incorporated herein by reference, to be provided to M'fUC. Ltd. dba 'fBC iinlcrprises, is hereby approved pursuant to Section 501.073 of the Texas Local Government Code. Passed by the City Council on June 23. 2020 U- DANIEL M. POPE, MAYOR ATTEST: Rebecca Garza, City Secretary APPROVED AS TO CON JOINT Brianna Gerardi, BusinesVpevelppmcnt Director APPROVED AS TO FORM: Kc Hi Leisure, Assistant City Attorney ccdocs/KliS. 1,I;0A Uxpciidilini: MTtK', I.id U6.08.20 Resolution No. 2020-R0200 LEDA Project Presented to City Council June 23,2020 Project Governor Mtbc, Ltd. (TBC Enterprises) was founded in 1996, located in Lubbock, Texas, and a local distributor of hair and beauty products, is expanding and has chosen the Lubbock Business Park for their expansion project. The company estimates that the new project will result in 125 new and relocated primary jobs for the City of Lubbock with an estimated annual compensation of $3,750,000. The total capital investment for the project is estimated to be $16,000,000. Mtbc, Ltd. Agrees to close on the purchase of the property at the Lubbock Business Park prior to December 31, 2020 and secure a Certificate of Occupancy for the project prior to May 31, 2021. The Lubbock Economic Development Alliance Board of Directors has voted to grant Mtbc, Ltd. a potential job creation incentive of $375,000. • This employment creates an additional 143 indirect (suppliers/support operations) and induced jobs (retail/entertainment/hospitality) for a total of 268 jobs. • The present value of net benefits** to the City of Lubbock over 10 years (fiscal) is $1,224,371. • The present value of net benefits to all taxing districts over 10 years (fiscal) is $2,164,885. *Earnings impact includes all salaries/wages, benefits, and other compensation to employees. Value added impact (change in Lubbock County's Gross Regional Product) includes earnings, taxes, and profits that the company has added to its inputs and is equivalent to revenue less outside purchases (of materials and services). This represents the wealth created and is also called value-added output, or productivity. **The Present Value of Net Benefits is a way of expressing in today's dollars, dollars to be paid or received in the future. Today's dollar and.a dollar to be received or paid at differing times in the future are not comparable because of the time value of money. The time value of money is the interest rate or each taxing entity's discount rate. This analysis was conducted using Total Impact—, a model by Impact Data Source. The analysis was performed using company data, rates and information provided to Lubbock Economic Development Alliance. In addition, the model uses certain estimates and assumptions common for this type of analysis and based on data collected for Lubbock County. Using this data, the impact from the facility and the costs and benefits for relevant taxing districts were calculated using multipliers provided by Economic Modeling Specialists Inc. RE 20-19 RESOLUTION RATIFYING MTBC, LTD (TBC ENTERPRISES) PROJECT GOVERNOR THE STATE OF TEXAS COUNTYOFLUBBOCK At a regular meeting of the Board of Directors of LUBBOCK ECONOMIC DEVELOPMENT ALLIANCE, INC., a Texas nonprofit corporation (LEDA), on Wednesday, May 27, 2020, held in conformity with the bylaws, after due notice as therein provided, a quorum being present and acting, the following resolution was unanimously adopted: WHEREAS, LEDA presented to members of the Board the proposal of a possible Economic Development Grant and Contract to MTBC, Ltd.ITB Enterprises. The terns and conditions of such Economic Development Grant and Contract, other than the normal terns and conditions applicable to all such Economic Development Grant and Contracts by the Corporation, are described generally as follows, to wit: Grant MTBC, Ltd. (dba TBC Enterprises), with a capital incentive grant of $375,000 to be paid out over a 3-year period in consideration of the purchase of the Lubbock Logistical Center. The company will maintain their current level of employment of 80 employees and anticipate creating an additional 45 jobs with an estimated annual compensation of $3,750,000, with Right of First Refusal on the 12-acre parcel south of the Lubbock Logistical Center for future expansion of MTBC, Ltd.. WHEREAS, The Board of Directors of LEDA finds that an Economic Development Grant and Contract offering the capital incentive grant of $375,000 comply with the qualifications and purposes of the Corporation for the granting of such Economic Development Grants and Contracts. Upon Motion by Director, Ms. SuzAnn Kirby, and Seconded by director, Dr. John Opperman, it was approved, IT WAS RESOLVED that LEDA offer and, if accepted by Recipient, enter into an Economic Grant and Contract with MTBC, Ltd. (TBC Enterprises). This Economic Development Grant and Contract will be on the normal terms and conditions of such Economic Development Grant and Contract offered by LEDA to existing businesses and business prospects and authorize the CEO to execute the Agreement.